Ok

So ive shot in PAL , captured and editing onto a PAL timeline in FCP4. Now I've exported the movie as PAL FCP movie. Put it into cleaner6 to encode into MPEG2. Once this has finished i play back the MPEG and get colored blocks throughout the video.

Any ideas?

Why are you using Cleaner rather than Compressor?

I have tried to get an .mpg file out of compressor and am having a tough time figuring it out>> which presets am I going for and where can I adjust compression settings?
Josh